1099 Archives - KEYTLaw's Blog

Health Care Bill’s 1099 Reporting Burdens Businesses

The Heritage Foundation: “One the most troubling policies in the Patient Protection and Affordable Care Act (PPACA) is a new requirement that businesses report more information on their activities to the Internal Revenue Service. This new requirement will force businesses to divert scarce resources to complying with additional bureaucratic red tape that they could better use creating new jobs.”

The 1099 Insurrection

Wall St. Journal: “The White House fights an effort to ease a burden on small business. . . . The Senate will vote on amendments to the White House small business bill that would rescind an ObamaCare mandate that companies track and submit to the IRS all business-to-business transactions over $600 annually. . . . But this ‘tax gap’ of unreported business income is largely a Beltway myth, and no less than the Treasury Department’s National Taxpayer Advocate Nina Olson says the costs will be ‘disproportionate as compared with any resulting improvements in tax compliance’.”

See “Chambers fighting paperwork mandates included in federal health insurance reforms” and a related story in the New York Times called “Many Push for Repeal of Tax Provision in Health Law” that starts:

“Many Democrats have joined Republicans in pushing for the repeal of a tax provision in the new health care law that imposes a huge information-reporting burden on small businesses.”

Billions of New Tax Forms Starting 2012: 40 Million Businesses Must Send IRS a Form 1099 to Every Party They Pay $600+ a Year

CNN Money: “The new regulations, which kick in at the start of 2012, require any taxpayer with business income to issue 1099 forms to all vendors from whom they purchased more than $600 of goods and services that year. That promises to launch a fusillade of new paperwork: An estimated 40 million taxpayers will be subject to the requirement, including 26 million who run sole proprietorships, according to a report released this week by [IRS] National Taxpayer Advocate Nina Olson.” The new 1099 requirement was contained in the 2,200 plus pages of the Obamacare law.